paying vat for services provided by a limited company?

dawsinho

Hello,

Any vat experts on this board?!!?

Basically I would like to know if I employed a limited company to provide services for my limited company. And the limited company providing a service is not VAT registered, would I have to pay vat to the tax man for their services? hope that makes sense!

Thanks in advance,

Daws

mrtg0525

Of course the most important part of the answer is "talk to your accountant" .

IMHO you wouldn't have to pay VAT on top of their invoice simply because there is no VAT to be paid. However, you won't be able to reclaim any VAT on their invoice (which should be obvious...).

Just keep in mind that I'm not an accountant...

martindow

If the company you are using is not VAT registered then no VAT is payable. If they are VAT registered you would of course have to pay it although you could reclaim it if you are registered yourself.